Along with the so-called Sensitive Technology List, released Feb. 6, the government also announced a new National Cyber Security Strategy (NCSS), with a price tag of $37.8 million over six years to protect Canadian individuals, businesses and services from cyber threats.
The Sensitive Technology List will be used to shape federal laws and regulations governing foreign investment reviews, export controls, research funding and related policy development.
“The creation of Canada’s Sensitive Technology List is an important tool in our efforts to protect Canada’s sensitive technology sectors from foreign actors to ensure research and innovation continue to support Canada’s long-term economic prosperity,” Public Safety Minister David McGuinty said in a Feb. 6 news release.
The 11 sensitive areas identified in the list are advanced digital infrastructure technology, advanced energy technology, advanced materials and manufacturing, advanced sensing and surveillance, advanced weapons, aerospace/space and satellite technology, artificial intelligence and big data technology, human-machine integration, life science technology, quantum science and technology, and robotics and autonomous systems.
The technologies have emerging or novel uses and Canada seeks to protect them from “unwanted transfer to foreign threat actors to the detriment of its own national security and defence,” noted the news release. It is similar to the U.S. government’s Critical and Emerging Technologies List and was developed in consultation with scientific experts from 22 federal departments and agencies, including the Office of the Chief Science Advisor, Innovation, Science and Economic Development (ISED), and the security, intelligence and national defence community.
“Several of Canada’s and the U.S.’s allies, including Australia and the United Kingdom, have issued their own lists of sensitive sectors or critical and emerging technologies that need to be protected and/or promoted,” stated the news release. “The government of Canada continues to collaborate with key allies to ensure continued cooperation and information sharing.”
In a 2023 opinion piece, University of Waterloo computer science professor Tamer Özsu argued that protecting Canadian IP is a valid concern, but warned against government overreach.
“The Canadian government’s preparation of a list that prohibits engagement with certain entities, including universities and laboratories, reflects a concerning shift towards restrictive policies,” he wrote. “Contrary to Canada’s heritage of fostering open engagement and collaboration, these measures go beyond what other countries have implemented.”
The list stems from commitments and investments made in Budget 2019 to protect Canada from economic-based threats and, according to the release, will not replace existing lists such as the government’s Sensitive Technology Research Areas (STRA), which was published in January 2024.
In a separate Feb. 6 release, the government said that its cyber security strategy, titled Securing Canada’s Digital Future, takes a “whole-of-society approach” by relying on strengthening partnerships with all levels of government, law enforcement, industry, Indigenous communities, academia and global allies to reduce critical infrastructure disruptions to services that people in Canada rely on every day.
“It will facilitate faster information sharing and ensure that all partners are taking the necessary measures to prevent cyber incidents,” according to the news release. “It will fund initiatives to improve the nation’s cyber security, including awareness and education programs for children and youth to ensure they can fully participate in a digital age, while being resilient and prepared.”
The cyber security strategy will more closely align Canada’s approach to protections implemented by the United States and other international allies, said the government.
In May 2023, the government published a Federal Cyber Incident Response Plan to provide co-ordination protocols for responding to cyber security events or incidents affecting non-government systems.
If you have any information, story ideas or news tips for Law360 Canada, please contact John Schofield at john.schofield1@lexisnexis.ca or call 905-415-5815.